1. Evaluate O'Doul's positioning strategy. Is it wise, given the flat market for the overall beer industry? In my opinion O'Doul's positioning strategy is very good for all beer company around the world and Anheuser-Busch Cos Inc itself. They can distinctive big idea in mind of the target market at the right time and place. The company focuses on customer's need and wants, at the same time give the priority to legal constraint. In this case customer's or beer drinker's need to drink beer for it taste, join the fun, apart of heritage and culture. At the same time beer drinker want to avoid the cost associated with overindulge. Anheuser-Busch Cos Inc produce O'Doul's not to replace the alcoholic beer with nonalcoholic beer, their just want to do application and user positioning for company to give focuses and satisfy customer with their drinking dilemma. It show's that company also care about the legal constraint.
Their also make attribute positioning, with Anheuser-Busch Cos Inc promotes O'Doul's with its highly successful Budweiser brand. This image from a best beer producer occupy as a unique place in mind of nonalcoholic beer drinker's as positioning bases to the mind of prospect such as "What beer drinkers drink when they're not drinking beer".
Their positioning strategy look successful because O'Doul's market shares growth positively and closing the gap in second place in nonalcoholic beer share market.
Yes, it wise to give the flat market with overall beer industry because, it shows that Anheuser-Busch Cos Inc. (Company also produce many kind of alcoholic beer) also care about stricter legal constraints against drinking and driving. In other word it promotes their company name and product to suite consumer behavior trends, and give some opportunity to steal overall sales market from competition. Anheuser-Busch Cos Inc. produce O'Doul's not to replace alcoholic beer which the major sales volume for them, it is one way to influencing customer...
...Consumer buying behavior
Consumer behavior of purchasing beer is definitely emotional and of low involvement. The pleasure and gratification getting from drinkingbeer can be sensual but fleeting. When making purchase decisions, consumers hardly spend any time to recognize problems or to search information because when they feel like drinking, they will just buy some.
Generally speaking, customers keep loyal to their favorite beer brand. In fact, many of my friends have told me that Yanjing Beer tastes the worst among all they have tried and even though it’s relatively cheap, they are not likely to buy it after first try. As you can see, among all the brand attributes of beer, the price is not a significant concern while taste, which can lead to brand value, matters much more. Once customers have recognized the nice taste of a certain beer brand, probably they are never going to switch brand and all the beer decisions they make later will be regular purchases.
Beer market segmentation
The bases I choose for segmenting the Chinese beer market include age, gender, income level, life style, user rate and geographic area. All these factors matter in that they determine the different consumer behavior of drinkingbeer, as concluded in Table 1.
Age From 18 to 60...
...Boston Beer Company
Boston Beer’s strategy is primarily focused on growth through differentiation. The sources of its competitive advantage can be classified as a company that provides high quality beer with unique flavors, a market driven approach, and a very efficient contract brewing strategy.
In terms of quality, the company created a premium beer by its selective use of ingredients and less water. Boston Beer has won honors such as being the first American beer sold in Germany due to its use of only barley, yeast, hops, and water as its ingredients. With the increase in health consciousness among beerdrinkers and the rise in more distinctive and flavorful brews, the Boston Beer Company has been able to use its packaging and commercials to communicate its quality commitment to consumers. It is its image for quality among consumers that allows the company to keep high prices and profits when compared to major brewers such as Coors, Budweiser and Miller.
Contract brewing has allowed the company to use extra brewing space among other firms to brew beer. The Boston Beer Company has benefited from such practice in that no capital was required to purchase facilities and equipment during a period in which it was growing at a double digit rate. Additionally,...
Jim Koch was motivated and haunted by the idea of being an entrepreneur in the beer brewing business. Once upon a time his great-great-grandfather created a recipe that was full bodied, had a longer brewing time, used rare hops, and cost a lot more than the imports are costing. Koch saved $100,000 and was able to acquire $140,000 from family and friends to start up his brewery. Knowing that it would cost close to $10 million to actually open a brewery, Koch contracted out his brewing to an existing company, The Pittsburg Brewing Company, and named the beer Samuel Adams after the revolutionary icon who was also a brewer.
The first step had been made; Koch only needed to find bars and retailers willing to carry the high priced beer. Starting small Koch went from bar to bar to sell the beer and was able to find some to carry Samuel Adams. Slowly he began to expand first to Washington DC then to New York and so on. He distributed through his own trucks, grew his flavors and his business from less than a dozen sales reps in 1989 to over 70 nationwide in 1994. Taking his beer on the road Koch won multiple gold medals in blind taste tests, outperformed the pricy imports, and created a niche market owned by the micro-breweries.
Koch and Samuel Adams faced many problems along the way, three of which were Start up, expansion and distribution, and stock price...
Most significance troubles for De Beers are due to government consequences in the United States due to diamond warfare in West Africa, diamonds are commencing to run by the destroyed areas of Republic of Sierra Leone as well as Republic of Angola, along with in Soviet Russia, mines are comprising controlled topically as contrary to together with De Beers.
With a possible increase in diamond gross sales anticipated in the United States, stresses the fact that De Beers be abandoned in company merchandising as well as gross sales endeavor. Diminish in costs can severely hurt De Beers as well as the whole diamond manufacturer. Another problem De Beers is facing is company technique of bracing the diamond cost.
By marketing for diamond merchandisers by the Central marketing company in Greater London, as well as ascertaining the supplying of diamonds provided for these merchandisers, De Beers assure what stones embark the marketplace at what cost. This exclusive dispersion line has comprised at the center of company power to determine the diamond marketplace.
The symbolization of romance with diamonds has been in play for years. With the supply growing diamonds have continued the rise of uncommon and appreciated goods.
...A Case of Colorado Beer – Convenience Store Advocate
One may state that upon the passing of the new beer law, some sales in the existing liquor stores may decline. Despite this possibility, this can present a major expanding opportunity for all the craft beer creators in the area. As a convenience store advocate, I support the passage of House Bill 1192, which would allow grocery and convenience stores to sell full strengthbeer. While there are arguments on both sides for and against this Bill, one must recognize that convenience stores sales were already affected by the recent changes to the law allowing Sunday sales of liquor, malt beverages and wine. We have seen a decrease of 16 % in sales of 3.2 beers during the 1st quarter following the change. This has had a significant impact on the ability of the convenience store to compete with alcohol sales on Sunday, creating an inequity in the market.
The state of Colorado has one of the highest percent of microbreweries in the United States per capita and is famous for craft beers. Colorado has a higher percentage of alcohol consumption than 60 percent of other states. The higher level of Colorado liquor consumption per capita could correlate to widespread retailing of liquor in the state, along with a slightly younger population and higher rate of tourism. Colorado consumers not only consume more per capita than...
Strategic Marketing Management
The market dynamics of the Australian beer market is given in the casestudy. The beer market in Australia is extensive due to high consumption by Australians. In the early 1800’s, there existed numerous independent breweries. Due to excise laws and better transport systems large breweries started acquiring smaller ones, and through widespread inorganic growth, by 1985 the industry became dominated by two corporate conglomerates, Elders IXL(CUB) and Bond Corporation. Both used aggressive marketing strategies for increasing market share.
Top highlighted reasons for beer consumption were mixing with others, relaxing, allowing social drinking and enhancing appetite and the concept of beer being equal to ‘liquid food’. Women in general did not like the beer taste and contributed to only about 12% of the total sales volume, whereas 37% of the 54% adult drinking population admitted to be regular drinkers. Only 10% were ‘ocker boozers’ who contributed to 60% of the volume. Hotels/pubs and retail outlet routes formed the bulk of the sales. Standard beer was the most consumed at 70% followed by light beer at 24%. Males across all age groups equally represented beer consumption with...
...CaseStudy #3 Corona Beer: From local Mexican Player to a Global Brand
1) What are the dominant business and economic characteristics of the global beer industry?
- Extremely competitive
- Private label dominates
- Few large companies producing many labels
- Local government regulations
- New markets need to be discovered
- Saturation of existing markets
- Foreign exchange rates
The global beer industry continues to be extremely competitive, most large companies have multiple private label brands to address different tastes and needs throughout the world. The industry continues to face large challenges from local governments who are imposing strict rules and taxes for companies looking to due business in their country.
The economy has changed the global beer industry’s profitability, as exchange rates continue to fluctuate, companies are trying to figure out ways to reduce operating expenses to offset the decline in exchange rate. There is also a need to expand into new markets and understand the needs of that market to be successful. Existing markets are almost to the saturation point and slow growth will be experienced for companies who don’t look to diversify.
2) What do you see as the key success factors for firms in the global beer industry?
Introduction: Corona Beer, produced in Mexico by Grupo Modelo since 1922, entered the United States beer market in 1979, and by 2007, was the number one imported beer in the United States (with 1.9% market share of the global beer industry) having recently taken that position from Heineken, a rival (with 1.6% market share of the global beer industry). Corona used a broad differentiation strategy with a “fun in the sun” marketing image. It also achieved strategic success by using a distinctive glass bottle and providing a light-tasting beer that attracted a broader market.
Problem identification: The global beer industry was experiencing increasing competition due to the new and potential mergers and acquisitions of its competitors. One example was the partnership between Heineken and FEMSA, which was formed in an attempt to dethrone Corona as best-selling imported beer in the United States. In addition, with the introduction of NAFTA, Canadian and U.S. competitors were slowly beginning to penetrate the Mexican market, while FEMSA continued to experience steady growth and increase its local market share.
Analysis: Financial analysis indicated that costs were increasing for Grupo Modelo, while competitive analysis indicated that Anheuser-Busch spent $192M on U.S. marketing in 1985 compared to a mere $5.1M spent by Grupo Modelo. This...